Oil prices rose on Monday, as the market reacted to the news that Saudi Arabia had shut down an oil pipeline and talks about the Strait of Hormuz had been cancelled.
The price of a barrel (159 litres) of Brent crude from the North Sea for delivery in November climbed by almost 3% in the morning to $107.60, moving back towards the $110 mark.
On the last trading day on Friday, the Brent price fell slightly after a rapid rise in the preceding days.
Oman announced on Sunday that talks between Iran and several Gulf states over the disputed Strait of Hormuz had been postponed. Omani Foreign Minister Badr al-Busaidi said the meeting had been postponed "in the interest of consensus."
The conflict in the Middle East is putting massive pressure on Saudi Arabia, the world's largest oil exporter. After Iran's blockade of the Strait of Hormuz and the growing threat to the Bab al-Mandab strait by the Houthi militia in Yemen, the kingdom has also had to shut down an important pipeline following drone attacks.
A further reduction in Saudi exports could push oil prices higher.
The East-West pipeline, which can transport large quantities of oil from the Persian Gulf to the Red Sea bypassing the Strait of Hormuz, was shut down as a precaution after attacks on the line in the regions of Riyadh and Medina.
Brent crude has risen by almost 80% since the start of the year but is still below the peak reached at the end of April, when it hit just over $126 per barrel.